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On the Measurements of Board Composition: Poor Consistency and a Serious Mismatch of Theory and Operationalization
Author(s) -
Daily Catherine M.,
Johnson Jonathan L.,
Dalton Dan R.
Publication year - 1999
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1999.tb01602.x
Subject(s) - operationalization , consistency (knowledge bases) , composition (language) , computer science , econometrics , business , mathematics , epistemology , artificial intelligence , philosophy , linguistics
Over two dozen operationalizations of board composition can be identified from the empirical literature. A structural equations confirmatory factor analysis (LISREL 8.03) suggests that these operationalizations do not constitute a single construct of board independence. Instead, analyses strongly indicate three separate constructs. Common operationalizations of board composition, then, are neither tenable surrogates for one another nor are they interchangeable. Implications for empirical aggregation of studies, theory/measurement convergence, and the current corporate governance public policy debate are discussed.